Aeronautics: Boeing in discussions to buy its subcontractor Spirit

Will Boeing buy Spirit AeroSystems, almost two decades after selling it? The American giant and its subcontractor confirmed that they were holding preliminary discussions for this purpose, while specifying that there was no certainty that they would succeed.

The objective of this possible merger would be to strengthen the quality of American aircraft, which are faced with recurring safety problems. Sold to an investment fund in 2005, Spirit AeroSystems supplies fuselages in particular. It achieves 64% of its turnover with Boeing (only 19% with Airbus, according to Bloomberg). He has been under surveillance since the incident on January 5, when a cap holder from the cabin of an Alaska Airlines Boeing 737 Max 9 came loose in mid-flight. Penalized by a high turnover of its employees after the pandemic and by losses on certain contracts, the subcontractor is in financial difficulty. He reported production problems throughout 2023, some of which affected the fuselage. This reduced its production rate and deliveries.

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According to Boeing, “ the reunification (…) of production operations would further enhance aviation safety, improve quality and serve the interests of our customers, employees and shareholders.”

For the aircraft manufacturer, time is running out. The Federal Aviation Administration (FAA, the agency responsible for regulations and controls concerning civil aviation in the United States) gave it, on February 28, ninety days to present measures likely to restore confidence in its management processes. production. This ultimatum followed the publication, on February 25, of an expert report commissioned by the American Congress after the two Max crashes in 2018 and 2019. Produced mainly before the affair of the door panel torn off in flight on Alaska Airlines' 737 Max, this report had already detected complex and surprising safety procedures at the aircraft manufacturer.

“ Boeing must commit to making real and profound improvements,” the FAA boss said. “Achieving fundamental change will require a sustained effort from Boeing leaders,” he insisted, “and we will hold them accountable every step of the way, with mutually understood milestones and expectations. »

For its part, Spirit AeroSystems assured that its board of directors and management team are “ committed to enhancing shareholder value and regularly reviewing business opportunities to fuel this objective.” According to the Wall Street Journal, Spirit AeroSystems is also studying the opportunity to sell activities in Ireland, which supply Airbus, Boeing's great European rival.

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If Boeing's takeover of Spirit materializes, it would be the largest acquisition by the American giant since the purchase of the equipment manufacturer KLX Inc., in 2018. It would also be an admission that the outsourcing policy carried out by the group to improve its profitability was not the happiest.

Asked at the end of January to know if he considered, in hindsight, that the split had been ill-advised, Boeing boss Dave Calhoun admitted that the group had “probably” gone too far. “But now it's done and I have to deal with it,” added the man who took control of Boeing in January 2020. Until now, he had always denied the recurring rumors about the takeover of Spirit by Boeing. Today, he may have no choice but to do so.